Sec. 402.404. SURETY BONDING. (a) A sole proprietor, partnership, corporation, or other legal entity engaged in the fitting and dispensing of hearing instruments shall file with the department security in a form provided by Subsection (b) in the amount of $10,000 and conditioned on the promise to pay all:
(1) taxes and contributions owed to the state and political subdivisions of the state by the entity; and
(2) judgments that the entity may be required to pay for:
(A) negligently or improperly dispensing hearing instruments; or
(B) breaching a contract relating to the dispensing of hearing instruments.
(b) The security may be a bond, a cash deposit, or another negotiable security acceptable to the department.
(c) A bond required by this section remains in effect until canceled by action of the surety, the principal, or the department. A person must take action on the bond not later than the third anniversary of the date the bond is canceled.
Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999.
Amended by:
Acts 2015, 84th Leg., R.S., Ch. 838 (S.B. 202), Sec. 1.122, eff. September 1, 2015.
Section: Previous 402.306 402.351 402.352 402.353 402.401 402.402 402.403 402.404 402.405 402.406 402.451 402.453 402.501 402.551 402.5521 NextLast modified: September 28, 2016